Fed's Kashkari: Central bank's actions before September are full of uncertainty

A major shift in US trade and immigration policy has created uncertainty for Fed officials to take interest rate action until September as the Trump administration continues to negotiate tariffs with many governments, the Federal Reserve's Mr. Kashkari said, according to Golden Ten Data. "Anything is possible, but will it be clear enough by September? I'm not sure yet. We'll see what the data says and how the negotiations go," Mr. Kashkari said on Monday.
He added that if the United States and other countries reach a trade deal in the coming months, "that should provide a lot of the clarity we're looking for." Widely imposed tariffs are believed to have pushed up inflation in the United States while weighing on economic growth as businesses cut investment and households rein in spending. Kashkari and other central bankers, including Goolsbee, have said the bar remains high for rate cuts in the short term. "This uncertainty could put pressure on economic activity and create challenges for us because we're not sure how things will play out and therefore where monetary policy should go," Kashkari said.